Nvidia (NVDA) shares are once again on the move to the upside in early trading after hitting fresh all-time intraday highs of $164.42 after a +1.8% rally yesterday, as the semiconductor and artificial intelligence juggernaut became the first company in U.S. history to reach a $4 trillion market cap. This latest high marks a sharp +88% rebound from the 52-week lows of $86.62 during the tariff news announcements in early April.

Traders now must assess a complex market environment for Nvidia. The obvious question is whether the uptrend can continue after an already-strong rally. But they also must consider another difficult issue in the form of broader external risk. The semiconductor and chipmaker sector, a vital part of the overall economy, has come under even more extreme focus recently as a main focal point of President Trump’s tariff announcements and trade negotiations.

Looking at the price action, one could make some arguments that this ferocious uptrend is slowing and approaching potential resistance. A trendline starting near the previously mentioned yearly lows and connecting subsequent low points has been broken, with price transitioning to a more modestly sloping (but still fairly steep) channel shape beginning with the May 14 gap-up lows of 131.21.

Yesterday, price topped out right around the upper edge of the channel, which also coincides with the yearly +2 Standard Deviation Channel. This study can be used to gauge potential resistance, so the intersection of this line and the channel line near about 163 could be worth watching.

However, the Relative Strength Index is not necessarily cooperating with this outlook. This study, which measures momentum, showed bearish divergence recently, meaning that the pace of the new highs was slowing down. But yesterday’s jump brought the RSI back to the overbought area, which is typically regarded as a sign of strength in trending markets. Additionally, RSI made new relative highs and broke through a short-term downward trendline.

For downside levels to monitor, the old double-top highs near 153 from November and January stand out because price recently broke above this level, then held on during a dip and retest before continuing to rally. Beyond that, volume is relatively light until about the 145 area.

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